EUR/GBP breaks Flag Formation!
For today’s article we have chosen to present you the EUR/GBP currency pair. First of all we would like to point out that we have chosen the cross because the main trend on a daily basis is very well positioned and we see signs for further trend continuation. We can clearly see the flag formation being created in the last couple of weeks and this is a trend continuation price structure.
Today there is a break of the lower flag boundary and we expect declines to continue towards a major weekly support which the price is very likely to be targeting from the beginning of the trend – in other words the levels between 0.7800/0.7750.
Even if the quotes rebound and start to climb again we would not expect a trend reversal as there are no signs for it on the daily chart. However, in case the price breaks 0.8030 it would indicate a stronger bullish presence which could push the quotes towards 0.8160.
Report by (Zhivko Yordanov)
RISK DISCLAIMER The content of this analysis does not contain investment advice or recommendation and should not be considered as a solicitation to buy any financial instruments or products. JFD Brokers is not liable for any damages, which would be/are caused by individual comments and statements regarding this analysis and accepts no liability in respect of completeness and correctness of the content. Thus, the investor exclusively bears the risk and is solely responsible for his/her investment decisions. The presented analysis does not take into consideration any personal investment objectives, financial circumstances or needs. Trading Foreign Exchange and Contracts for Difference (CFDs) is highly speculative and may not be suitable for all investors. Please ensure that you fully understand the risks involved.
Looking to capitalise on rising & falling USD, GBP, EUR rates? Trade forex in minutes with our top-rated broker, eToro.
77% of retail CFD accounts lose money.